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Originally Posted by Nathan
Macro Economics people...
- Low dollar causes exports from the US to be high, causing $$ to travel more and more from foreign countries back into the US.
- More and more $$ in the US means Americans have more $$ to spend
- More $$ to spend in the US by Americans means inflation goes up
- Inflation going up means stuff getting more expensive in the US, people can spend less $$
- For the US to still have money to spend since $$ is worth less EVERYWHERE (yes, its EVERYWHERE, even in the US) the US has to either buy back $$ (which it can not because it simply has no friggin money anyway) or PRINT MONEY
- Printing money: inflation goes up.
Its good for exports, its BAD .. VERY VERY BAD in the longrun for EVERYONE involved. Having a low $$ is not great people, really is not, even for you americans its not.
The US Gov will HAVE to soon do something against this...
If a CHEAP currency was that great, I wonder why all the friggin 3rd world countries with shitty currencies do not make BILLIONS in exports ;)
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It's not really good for exports, stability in the currency would be better. This is because the weak USD kills exporters in other countries (where exports matter much more to the economy, e.g. japan, germany etc).. These economies stagnate or have low growth and they save instead of buying cheaper US products.